AN ACT to SUPPORT SMALL FARMERS IN NORTH CAROLINA BY providing GRANT FUNDING to ensure THE FUTURE VIABILITY OF NORTH CAROLINA'S FAMILY FARMS.

The General Assembly of North Carolina enacts:

SECTION 1.  Findings and Purpose. – The General Assembly finds that decades of barriers to entry, rising land prices, and economic consolidation have led to the loss of millions of acres of land farmed by small farmers. The General Assembly further finds that financial assistance through targeted grants can help address disparities and contribute to the long‑term success of small farmers. The purpose of this act is to support the viability and sustainability of small farmers in North Carolina by providing financial assistance to support these farmers.

SECTION 2.  Chapter 106 of the General Statutes is amended by adding a new Article to read:

Article 61B.

Small Farmers Support Grant Program.

§ 106‑748.  Definitions.

The following definitions apply in this Article:

(1)        Commissioner. – The Commissioner of Agriculture and Consumer Services.

(2)        Department. – The North Carolina Department of Agriculture and Consumer Services.

(3)        Eligible individual. – A resident of this State who meets all of the following criteria:

a.         Is at least 21 years of age.

b.         Is a small farmer.

c.         Had an annual income from farming operations for the preceding taxable year of at least one thousand dollars ($1,000) or more.

(4)        Small farmer. – A farmer with a gross cash farm income of one million dollars ($1,000,000) or less, as determined in a manner as the Department may specify.

§ 106‑749.  Small Farmers Support Grant Program established.

(a)        Program Established. – The Small Farmers Support Grant Program (Program) is established within the North Carolina Department of Agriculture to support current small farmers and to encourage the continued financial viability of those farmers in the field of agriculture. The Small Farmer Grant Fund (Fund) is established as a special revenue fund. The Fund shall consist of gifts, grants, and donations from non‑State entities and General Fund appropriations for the support of the Program established by this Article. The Fund shall be used for the provision of grants to eligible individuals for essential inputs, equipment, and operational improvements to their farming operations.

(b)        Grants. – Grants from the Fund are subject to the following procedures and restrictions:

(1)        An eligible individual seeking a grant shall submit an application on a form and in a manner approved by the Commissioner.

(2)        The Commissioner may establish priorities for grants among all eligible individuals based on criteria that include farm size, income levels, and economic hardship, including lack of access to capital and operational support.

(3)        The Commissioner may establish tiered maximum grant amounts based on financial hardship, demonstrated need, and other criteria the Department feels will maximize the ability of the Program to increase the long‑term viability and sustainability of small farmers.

(4)        The Commissioner may retain up to one percent (1%) of funds appropriated to the Fund for administrative costs related to administering the Program.

(c)        The Department shall establish an advisory committee to monitor the Program's effectiveness and make recommendations for improvements.

(d)       The Department shall adopt rules to carry out the provisions of this Article.

SECTION 3.  Funding. – The sum of fifteen million dollars ($15,000,000) in recurring funds for the 2025‑2026 fiscal year is appropriated from the General Fund to the Department of Agriculture and Consumer Services for the Small Farmer Grant Fund established in G.S. 106‑749, as enacted by Section 2 of this act, to be used for the Small Farmers Support Grant Program.

SECTION 4.  This act becomes effective July 1, 2025.